Key Elements of a Shareholder Agreement

Contact Neufeld Legal PC at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

There are a number of core components to a unanimous shareholders agreement which provides such a contract with value to its corporate shareholders.

A unanimous shareholders agreement tends to have a number of core aspects that provide benefits and protections to its corporate stakeholders, however simply relying upon boilerplate legal terms exposes one to the dangers of generic / boilerplate unanimous shareholders agreements, such that the engagement of knowledgeable legal counsel to create a customized unanimous shareholders' agreement tends to have far superior value. The core components of a unanimous shareholders agreement can include:

- Identification of Parties

- Recitals

- Interpretation

- Representations

- Scope and Nature of Shareholders’ Relationship

- Conduct of the Affairs of the Corporation

- Financing

- Restrictions on Transfer and Right of First Refusal

- Dispute Resolution and Compulsory Buy-out (Shotgun Clause)

- Obligation to Join in a Sale (“Drag-along”) and Piggy-back Rights

- Obligation to Purchase/Obligation to Sell

- Indemnification and Discharge of Guarantees

- Insurance Policies

- Sale on Death (and Permanent Incapacity)

- Wills/Alter Ego Trust

- Default Provisions

- Share Valuation

- Miscellaneous and General Provisions

For knowledgeable and experienced legal representation in negotiating and drafting a shareholders agreement that advances your business interests and those of the corporation, contact us at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or Chris@NeufeldLegal.com.

What is a Unanimous Shareholders Agreement?

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